Gold plummeted over $70! Bears are rampant, caution is still needed when bottom fishing

Gold Digger Lao Mao
March 26, 2026

The essence of trading has never been prediction, but response. Every entry is a game of probabilities; only discipline can help you preserve profits amid volatility.

At midday, gold experienced a sharp drop with increased volume, with the price falling from above 4540 all the way down to around 4415, a decline of over $70 intraday. The chart shows a typical bearish trend, with the midday session mainly consolidating in a narrow range to digest the previous decline.

From a technical perspective, on the hourly chart, the price directly broke below the lower Bollinger Band support, with the Bollinger Bands opening downward and diverging. The moving averages are arranged in a bearish alignment, MACD shows increasing green bars, and the KDJ indicator is in the oversold zone but has not yet shown signs of turning. Bearish momentum still dominates. Although there is a short-term oversold rebound demand, the overall downward trend remains unchanged, and rebounds are still opportunities for high-level short positions.

In terms of strategy, continue to adopt a bearish approach. In the short term, consider entering short positions in batches around the 4450-4460 resistance zone, with a stop loss above 4475, and targets at 4410-4400. If the price breaks below 4415 and quickly rebounds, consider a light long position in the 4420-4410 range, with a stop loss below 4400, and a target near 4450.

Warm reminder: The above analysis is for technical reference only and does not constitute investment advice. The market carries risks; trade cautiously, strictly set stop losses, and rationally control position sizes.